Solana Foundation President Speaks on "Predictable" Market Crash

Solana Foundation (@Solanafndn) President Lily Liu (@calilyliu) offered a clear-eyed explanation for the current dip in crypto and broader risk markets on June 4, arguing the sell-off was entirely foreseeable.

"This always happens before a generational IPO," Liu wrote. "All risk, big and small, gets sold into dry powder to get allocation in SpaceX (in this instance)."

The SpaceX IPO Factor

The listing Liu is referring to is shaping up to be the largest in capital markets history. @SpaceX is planning to debut on the Nasdaq on June 12, pricing shares at $135 each and selling 555.6 million shares. The company is targeting a valuation of approximately $1.75 trillion and a raise of roughly $75 billion, which would make it the largest IPO in history by a wide margin. It will list under the ticker $SPCX. Goldman Sachs is the lead banker for the offering, followed by Morgan Stanley, Bank of America, Citigroup and JPMorgan Chase.

The roadshow begins June 4 and pricing is set for June 11. With allocation access tightly controlled and demand widely expected to outstrip supply, institutional and retail investors alike are building cash positions ahead of the deal closing.

A Classic Pre-IPO Rotation

Liu's read on the market is straightforward: when a deal of this magnitude approaches, capital migrates away from riskier assets, including crypto, equities, and other volatile holdings, into cash reserves earmarked for IPO allocations. The pattern is well-established and tends to reverse once the IPO window closes and allocated funds either settle or are returned.

The implication is that the sell-off is not a signal of structural weakness in crypto markets, but rather a temporary liquidity event driven by one of the most anticipated public offerings in a generation. For investors watching the dip with concern, Liu's view suggests the mechanics behind the move are more mundane than alarming.

Liu is an entrepreneur and investor focused on the cryptocurrency industry, and previously co-founded Earn.com, which was acquired by Coinbase in 2018. Her background across both traditional finance and crypto gives her commentary on cross-market dynamics particular weight.

Sources
CNBC: SpaceX targets $135 IPO price at valuation of $1.77 trillion
Crypto Briefing: SpaceX targets mid-June 2026 IPO at $1.75 trillion valuation